Psystar files for Chapter 11 bankruptcy protection

Florida based Mac clone maker Psystarhas filed for Chapter 11 bankruptcy protection.

Psystar filed bankruptcy documents with Federal Courts in Florida on Thursday of last week. The court will hold a hearing on June 5.

So, what does this mean? Well, it puts the legal battle with Apple on hold for the time being. It also means that we could find who's been funding Psystar's legal battle with Apple as the company's equity creditors are revealed.

Bankruptcy also means that it's unlikely that Psystar will be able to continue to defend itself against Apple as the company won't have any cash to do so.

A list of Psystar's top creditors can be found here. It seems the company owes over $88,000 in legal fees, $13,000 to DHL and $12,000 to the IRS. Oddly enough, the company claims that it wasn't the legal case that sunk them, but the tightening of credit lines.

It's sad Psystar ended this way, although it was inevitable (unless it could clone Steve Jobs ...). Things might have interesting in court if Psystar had put up a robust defense against Apple. Any hopes of that happening has died.